Industrial ETF (FIDU) Hits New 52-Week High
For investors seeking momentum, Fidelity MSCI Industrials Index ETF FIDU is probably on radar. The fund just hit a 52-week high and is up 34.52% from its 52-week low price of $43.51/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near term outlook on it to get a better idea of where it might be headed:
FIDU in Focus
The underlying index, MSCI USA IMI Industrials Index represents the performance of the industrial sector in the U.S. equity market. The product charges 8 bps in annual fees (See: all the Industrials ETFs here).
Why the Move?
A better-than-expected U.S. economic recovery tends to benefit the industrial sector. A stronger economy can result in increased business investment, infrastructure spending, and higher demand for durable goods, benefiting industrial companies. Manufacturing companies expect positive business sentiment for the second half of 2023, with automation adoption expected to boost industrial activities. However, higher interest rates may act as a headwind.
More Gains Ahead?
Currently, FIDU has a Zacks ETF Rank #3 (Hold), however, the fund might continue its strong performance given a positive weighted alpha of 26.20.
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Fidelity MSCI Industrials Index ETF (FIDU): ETF Research Reports
